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Xiaomi SU7 Bags 88,898 Orders In Just 24 Hours: A Courtesy Of Its Strong Reputation In China
Xiaomi's entry into the electric vehicle (EV) market has made waves, with the company announcing a staggering 88,898 firm orders for their new SU7 model within just 24 hours of its launch. Eager customers flocked to 59 stores across 29 cities in China for test drives, leading to packed venues.
To secure a purchase, customers were required to make a deposit of 5,000 yuan (approximately 850 USD). The production of the Xiaomi SU7 is handled by the state-owned Beijing Automotive Industry Holding Co. (BAIC), which is also a major shareholder in Mercedes-Benz.
Xiaomi's new production facility in Beijing, completed in June of the previous year, boasts an initial annual capacity of 150,000 vehicles, a figure expected to double in its second phase. Despite not yet operating at full capacity, Xiaomi anticipates the commencement of customer deliveries by the end of April.
The launch price for the Xiaomi SU7 was set at 215,900 yuan (approximately Rs 25.34 lakh), aiming to be a more affordable alternative to the Tesla Model 3 by 30,000 yuan (approximately Rs 3.46 lakh). The highest-spec SU7 features all-wheel drive, dual motors, and a powerful 495kW (663 hp) output, supported by a 101kWh Qilin battery from CATL, enabling an impressive 800km range.
Two key factors contribute to the SU7's early success. Firstly, the charismatic leadership of Xiaomi CEO Lei Jun, who has a knack for marketing and has gained insights from leading competitors in the industry. Secondly, the brand's strong reputation and widespread user base in China play a crucial role, with many households already familiar with Xiaomi's ecosystem of products.
This built-in trust is essential in a market crowded with about 100 EV manufacturers, many of which may not survive the next five years. Despite the excitement, Xiaomi faces challenges, including customer complaints about the inability to cancel orders and concerns over the quality of test vehicles.
Thoughts About Xiaomi SU7's Success
Nonetheless, Xiaomi's rapid progress in the EV market, from announcing plans in 2021 to launching the SU7, positions the company as a notable contender in China's intensifying EV competition. The automotive world will be watching closely as Xiaomi navigates these early days in the EV landscape.
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